Marco Pescarmona Chairman & Head of Broking Division. UBS Italian Financial Services Conference 29 January 2009

Transcription

1 Marco Pescarmona Chairman & Head of Broking Division UBS Italian Financial Services Conference 29 January 29

2 Gruppo MutuiOnline aims to be the most innovative financial services company capturing the opportunities stemming from the evolution of the Italian retail credit market DIVISION Credit Broking ( Broking ) Distribution of mortgages and loans as pure independent intermediary. Business Process Outsourcing ( BPO ) Execution of credit-related processes in the name and on behalf of lenders. BUSINESS LINE Multi-brand broking of mortgages through Internet and telephone Multi-brand broking of consumer loans through Internet Multi-brand broking of mortgages through physical network Remote mortgage packaging services Mortgage underwriting and closing services Employee loan underwriting and closing services BRAND/ SERVICE % REVENUES (H1 28) 31% 16% 7% 15% 16% 15% 54% 46% (a) Excludes one-off costs related to restructuring of the Group and the IPO of the company amounting to 816, 2

3 The company went public on 6 June 27, just in time for the subprime mortgage crisis Share price and trading volumes Euros, number of shares Performance vs. ALL STAR index 1. 6,5,1,5, 9 IPO price = 5,6 6, -,5 -,1 -,15 8 5,5 -,2 -,25 -,3 7 5, -,35 -,4 -,45 6 4,5 -,5 -,55 -,6 5 4, -,65 giu/7 lug/7 ago/7 ott/7 nov/7 gen/8 feb/8 mar/8 mag/8 giu/8 lug/8 set/8 ott/8 dic/8 gen/9 MOL ALLSTAR 4 3,5 3 3, Share price snapshot 2 2,5 1 2, 1,5 giu/7 lug/7 ago/7 ott/7 nov/7 gen/8 feb/8 mar/8 mag/8 giu/8 lug/8 set/8 ott/8 dic/8 gen/9 Price as of 27 January 29: 2,9 Shares issued: Market cap: 114,6 million Volumes (' shares) Price 3

4 Key managers are fully invested in the company Shareholding structure as of 26 January 29 * Treasury Shares; 3,19% Free Float ; 24,94% Alma Ventures**; 32,37% Jupit er Vent ures***; 5,47% Capit al Research & Management ; 8,% Stefano Rossini***; 4,32% Nest or 2****; 11,37% Parvus Asset Vent ures; 1,34% * Share ownership as communicated to the company by relevant investors according to CONSOB regulations; includes all investors above 2% ownership threshold. ** The share capital of Alma Ventures S.A. is owned 5% by Guderian S.r.l. and 5% by Casper S.r.l.; Guderian S.r.l. is 1% owned by Marco Pescarmona (Chairman and co-founder) Casper S.r.l. is 1% owned by Alessandro Fracassi (CEO and co-founder). *** Director, member of the Executive Committee. ****Nestor 2 S.p.r.l. and Jupiter Ventures S.A. are venture capital pre-ipo investors. 4

5 Gruppo MutuiOnline offers a compelling investment opportunity GROUP Strong and committed management Sound underlying market fundamentals Superior financials BROKING DIVISION Leading position in online credit broking Independence from lenders Strong growth perspective for online distribution channels Leading position in high potential market State-of-the-art proprietary technology Operational excellence BPO DIVISION SYNERGIES 5

6 The relative immaturity of the Italian retail credit market implies significant long-term growth potential Outstanding residential mortgages as % of GDP (27) Outstanding consumer credit as % of GDP (27) UK 78,2% UK 16,5% Spain 54,5% Germany 1,% Germany 48,8% Spain 9,4% France 32,2% France 7,5% Italy 18,% Italy 5,8% % 1% 2% 3% 4% 5% 6% 7% 8% 9% % 5% 1% 15% 2% Source: Italian Banks Association elaboration on Bank of Italy, EMF, European Central Banks data 6

7 which is further enhanced by the relative underdevolopment of remote distribution channels Internet sales of financial products (% total sales, 27) Household Internet penetration (December 27) Sweden 22,% UK 18,% UK 56% Netherlands 14,% Germany 54% France 12,% France 53% Spain 9,% Italy 41% Italy 6,% % 1% 2% 3% 4% 5% 6% % 5% 1% 15% 2% 25% Source: Cap Gemini / Novametrie European financial institution management panel Source: Special Eurobarometer n. 293, June 28 7

8 The business model of the Broking Division is based on lead generation Loangranting phases Lead Generation Packaging Underwriting Closing Product Portfolio Management Contact Generation Gathering of Applications Lead Management Key throughout all phases: Incentives to stimulate and reward commercial performance Proprietary IT platform (online front-end and sales force back-end including CRM) Revenue model Revenues generated through success fees paid at closing of loan Commissions typically range between 1% and 2,5% of loan amount and are generally based on a step-up scheme that depends on total brokered volumes during the year 8

9 On the MutuiOnline website consumers can easily and transparently compare mortgage quotes 9

10 The BPO Division operates in a totally underdeveloped market that has significant growth potential Outsourced mortgage fulfilment processes in selected European countries 26 Netherlands 5% Growth drivers of the Italian credit BPO market Spain Germany UK 3% 35% 5% Underlying growth of the Italian credit market Fragmentation of the loan value chain driven by competitive pressures, technology, regulation and market growthù Strong cost/margin pressures on banks in the current market environment IAS 39 allowing amortization of outsourced costs over life of loans (vs. internal costs which are always recorded upfront) Italy 2% % 1% 2% 3% 4% 5% 6% Source: A.T. Kearney 27 report commissioned by the Company 1

11 The BPO service delivery model is based on a unique combination of technology and organization A re-engineered process... Streamlined activities Reduced lead-times Standardized yet flexible Totally integrated workflow and CRM engine Paperless Automated wherever possible leveraging technology Lender Borrower Brokers Insurance Appraisers Credit Bureaus integrating all transaction parties managed with a focused organization...and strategically located production sites Superior service model of the BPO Division Continuous productivity and workload monitoring Cradle to grave logic SLA monitoring for each operator Consistent incentive design Cagliari (Sardinia Italy) Arad(Romania) 11

12 Historical revenue trends Group Revenues CAGR +69% % Broking Division Revenues % 22% 71% 8.4 5% 18% 77% CAGR +58% % 18% 76% % 18% 71% 24A 25A 26A 27A 2 MutuiOnline PrestitiOnline CreditPanel % % 4% 74% 42% 26% 37% 24A 25A 26A 27A BPO Broking Division DivisionBroking BPO Division BPO Division Revenues % 4% 4.8 5% 5% CAGR +96% % 38% 46% % 34% 4% 24A 25A 5% 26A 27A FEC CEI CLC 12

13 Historical profitability EBIT % 98% 36% 33% 24% 2% 24A 25A 26A 27A (a) EBIT margin (%) % CAGR +97% 6% 59% 5% 45% 47% 76% 4% 39% 35% % 3% 29% 28% 31% 67% 2% 1% % 3% 24A 25A 26A 27A (a) BPO Broking DivDivision ision Broking BPO Division ision Broking Div ision BPO Div ision Group Net income , 4, CAGR +69% 5,2 9,7 24A 25A 26A 27A Note: (a) Excludes one off costs related to restructuring of the Group and the IPO of the Company amounting to 816, 13

14 Evolution of mortgage origination volumes Broking Division mortgage origination volumes ( mn) Broking Division mortgage market share Percentage CAGR +53% ,4% 2,% 1,9% 1. 1,6% ,2%,8%,7%,9% 1,1% 2,4%,% A 25A 26A 27A Source: Company data; Broking Division market share calculated according to residential lending flows figures provided on previous page 14

15 9m highlights Revenues EBIT % % m 7 (a) 9m EBIT margin 46% 48% 12 8 Net Income 4 9m 7 9m % 1. 9m 7 9m 8 NI margin 24% 31% Note: (a) Excludes one off costs related to restructuring of the Group and the IPO of the company amounting to 816, 15

16 Segment reporting Revenues EBIT % m 7 9m 8 +33% +39% EBIT margin % 9m 7(a) 9m 8 Broking Division 15.6 BPO Division +38% +54% 9m 27 (a) 27 (a) 9m 28 Broking Division 6% 59% 62% BPO Division 26% 28% 29% Total 46% 47% 48% Broking Division BPO Division Note: (a) Excludes one off costs related to restructuring of the Group and the IPO of the company amounting to 816, 16

17 Evolution of the Italian real estate market Number of residential real-estate transactions Thousands of transactions % A 21A 22A 23A 24A 25A 26A 27A 28E Source: Italian Land Agency and company projections: 28 estimate of number of residential real-estate transactions has been calculated by adding actual 9m8 data published by the Italian Land Agency to projected Q48 data which has been estimated applying 9m8 contraction rate to Q47 data published by Italian Land Agency 17

18 Evolution of the Italian residential mortgage market Residential mortgage flows Euro billion % A 21A 22A 23A 24A 25A 26A 27A 28E Source: Bank of Italy and company projections: 28 estimate of residential mortgage flows has been calculated adding actual 9m8 data published by Bank of Italy to projected Q48 data which has been estimated applying 9m8 contraction rate to Q47 data published by Bank of Italy 18

19 Appendix

20 Quarterly Profit & loss ( ) Q3 28 Q2 28 Q1 28 Q4 27 Q3 27 Revenues Other income Capitalization of internal costs Services costs (2.394) (2.655) (2.226) (3.183) (2.65) Personnel costs (2.76) (3.16) (2.553) (3.439) (1.994) Other operating costs (3) (351) (346) (395) (339) Depreciation and amortization (239) (215) (211) (273) (256) Operating income Financial income Financial expenses (118) (17) (15) (19) (11) Net income before income tax expense Income tax expense (2.176) (2.17) (1.537) (2.592) (1.737) Net income

21 Analysts view and consensus as of today EUROMOBILIARE 1/11/28 BUY DEUTSCHE BANK 29/1/28 BUY CAZENOVE 25/4/28 BUY BERENBERG 23/9/28 BUY CONSENSUS 1/11/28 4 BUY Target 5.7 Target 6.5 Target 7. Target 5.4 Target 6. 27A 28F 29F 28F 29F 28F 29F 28F 29F 28F 29F Rev. Broking Div. 22,7 26,5 27,6 26,1 29,1 26,3 31,9 27,1 29,1 26,5 29,4 Rev. BPO Div. 15, 17,8 23,5 19,6 24,2 19,8 24,4 19,4 24,3 19,2 24,1 Revenues 37,7 44,3 51,1 45,6 53,4 46,1 56,3 46,5 53,4 45,6 53,6 Ebit Broking Div. 13,3 16,1 15,8 14,2 16,7 12,9 15,6 14,2 15, 14,4 15,8 % of rev 59% 61% 57% 54% 57% 49% 49% 52% 52% 54% 54% Ebit BPO Div. 3,4 4, 6,2 5,8 7,1 5,5 6,8 5,8 7,2 5,3 6,8 % of rev 23% 22% 26% 3% 29% 28% 28% 3% 3% 28% 28% EBIT 16,8 2,1 22, 2,8 24,6 18,4 22,4 2, 22,2 19,8 22,8 % of rev 45% 45% 43% 46% 46% 4% 4% 43% 42% 43% 43% Net Income 9,7 12,8 14, 12,9 15,1 12,6 15,2 13, 14, 12,8 14,6 % of rev 26% 29% 27% 28% 28% 27% 27% 28% 26% 28% 27% 21

22 Q3 highlights Revenues EBIT % % Q3 7 Q3 8 EBIT margin 46% 51% 5 Net Income Q3 7 Q % Q3 7 Q3 8 NI margin 25% 33% 22

23 Importance of Remortgage Business Applications: breakdown by mortgage destination % of MutuiOnline mortgage applications Origination volumes: breakdown by mortgage destination % of total Mutuionline closed mortgages 1% 8% 1% 3% 1% 8% 6% 14% 6% 4% 2% 9% 7% 6% 4% 2% 94% 86% % % 26A 27A 26A 27A Purchase & refurbishment Remortgage & analogous Purchase & refurbishment Remortgage & analogous 23

24 Broking Division Q3 business update Broking Division In Q3 28, total amount of mortgages brokered and number of mortgage applications received increased significantly compared to Q3 27. Such growth is is mainly linked to the continued strong demand for remortgages accompanied by the resumption of the demand for house purchase mortgages, and affected both the online channel and the CreditPanel introducers network. However, during October 28, in connection with the renewed instability of the financial markets and the perceived fragility of the banking sector, we observed a slowdown in the volume of mortgages brokered and in the number of new applications towards levels comparable to those of the previous year. This is is due both to changes in demand (uncertainty and the fear of a recession are inducing consumers to postpone house purchase and refinancing decision) and a revision of the prime mortgage offering by lenders (increase of spreads, reduction of LTVs and maturities, elimination of some products). The situation now seems to be stabilizing, however significant uncertainty still affects the demand and the supply side of the mortgage market, reducing visibility on outlook for 29. The amount of personal loans brokered and the number of personal loan applications received in Q3 28 have continued to increase compared to Q3 27, with the same rapid pace observed in H1 28. Contrary to the mortgage market, the turbulence in the financial markets has not had - as of today - any negative impact on this business line. We highlight that the growth during the quarter is is also due to a significant restyling of the website, aimed at increasing sales effectiveness. 24

25 BPO Division Q3 business update BPO Division As regards mortgage outsourcing, volumes for commercial and processing activities kept growing in Q3 28 compared to Q3 27, as did the inflow of new applications. Moreover, remortgage procedures (surroghe) continued, albeit slowly, to improve, leading to a progressive increase of closing rates. In October, however, the turbulence in the financial markets has brought to a drastic contraction of incoming commercial leads, mainly because of modifications and restrictions on the supply side, coupled with changes and uncertainty on the demand side. It is is impossible at the moment to forecast if if this contraction will persist. Should it it continue, it it could have a negative impact on next year mortgage outsourcing activities for the existing clients. With respect to employee loan outsourcing activities, in Q3 28, volumes continued to grow as expected, even though at a slower pace when compared to previous quarters. The negotiations for the renewal, in a revised form, of the collaboration with the bank activated last year, are at an advanced stage. As regards the pipeline for new outsourcing clients, on the mortgage side, a pilot collaboration with the long-announced client has finally been activated, while there has been no significant progress in the initiative with the medium size retail bank which had signed a letter of intent in the summer. In general, business development activities are meeting a strong interest from potential clients, as cost reduction is is becoming imperative for financial institutions, yet, at the same time, system-wide uncertainty is is reflected in some volatility in the behavior of our prospects. 25